Dollar General Corp. (DG) posted third quarter earnings that were largely in-line with analysts' forecasts, but cautioned that extreme weather in the southeast United States will likely add to cost pressures that will hit profits over the second half of the year.
Dollar General said earnings for the three months ended on November 2, the group's fiscal third quarter, came in at $1.26 per share, a figure that matched Street forecasts and was 28.5% higher from the same period last year. Group sales, the company said, rose 8.5% to $6.4 billion, again matching the consensus forecast. The group also posted solid comparable store sales grow of 2.8%, which beat analysts' estimates of 2.4%. However, Dollar General said hurricanes and other disasters trimmed third quarter earnings by 5 cents a share, and would hold down the fourth quarter bottom line by another 4 cents per share.
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"During the third quarter, we delivered strong operating performance and financial results," said CEO Todd Vasos . "I am particularly proud of our team's dedication to our mission of Serving Others, which was on display this quarter as employees across our organization rallied to help our communities in need during the aftermath of two devastating hurricanes."
"Despite the challenges created by these weather events in the quarter, we achieved strong top-line growth and remained focused on expense control. Both consumables and non-consumables categories drove our financial performance this quarter, and we achieved our highest two-year same-store-sales stack in 11 quarters," Vasos added.
Dollar General shares fell 5.1% to $106 on Tuesday.
Dollar General also updated its full year earnings guidance, indicating an earnings per share range of between $5.85 and $6.05, a figure that falls shy of the $6.11 tally collected by Refinitiv IBES.
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